Press Releases

Main Street Announces Exit Of Portfolio Investment

Download PDF

Generates $3.9 Million Realized Gain and 16.3% Internal Rate of Return From Exit of Investment in Spectrio LLC

HOUSTON, Oct. 16, 2014 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") announced today that it recently fully exited its investment in Spectrio LLC ("Spectrio"), a leading national provider of on-hold messaging and digital signage managed services.

Main Street made its initial investment in Spectrio in May 2009 to support growth initiatives, a strategic acquisition and a debt refinancing. Main Street's initial investment consisted of a $5.7 million senior secured, first lien debt investment with an equity warrant participation for 8.4% of the fully-diluted equity interests in Spectrio.  After its initial investment in Spectrio, Main Street supported multiple add-on acquisitions by Spectrio with additional debt investments, with Main Street's outstanding debt investment in Spectrio reaching a peak balance of $18.0 million and with its warrant position increasing to 9.8% of Spectrio's fully diluted equity interests.  In conjunction with the sale of Spectrio in October 2014, Main Street's debt investment was fully repaid and its warrant position was redeemed.  Main Street realized a gain of approximately $3.9 million on the redemption of its warrant by Spectrio.  On a cumulative basis, Main Street realized an internal rate of return of 16.3% and a 1.7 times money invested return in aggregate on its debt and equity investment in Spectrio.

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.  Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors.  Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio.  Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.

Main Street's common stock trades on the New York Stock Exchange ("NYSE") under the symbol "MAIN."  In addition, Main Street has outstanding 6.125% Notes due 2023, which trade on the NYSE under the symbol "MSCA."

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CFO and Senior Managing Director, dhyzak@mainstcapital.com
713-350-6000

Dennard - Lascar Associates, LLC
Ken Dennard | ken@dennardlascar.com
Jenny Zhou | jzhou@dennardlascar.com
713-529-6600

 To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/main-street-announces-exit-of-portfolio-investment-279399842.html

SOURCE Main Street Capital Corporation